Innovation Management in Services Industries: The Impacts of Innovative Capacity and Transformative Learning

Wen-Hai Chih

Ling-Chu Huang

Tsung-Ju Yang

Abstract

This study highlights the innovation management and learning perspective of a firm’s innovative capability. The model proposed in this study examines the relationships among competence exploitation, competence exploration, transformative learning, innovation, and performance. This study presents empirical results from 225 service industry in Taiwan. First, the innovative capability factors positively affect transformative learning include competence exploitation and competence exploration. Transformative learning in turn has positive effects both on innovation and performance. Secondly, the rank order effects on innovation are competence exploitation, competence exploration, and transformative learning, respectively. The rank order effects on performance are competence exploration, competence exploitation, and transformative learning, respectively. Finally, transformative learning is the mediating effect of competence exploitation and competence exploration on innovation and performance.

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